@techreport{Debaere2010Creasing,
abstract = {We use unique plant-level data to study the link between the local availability of services and the decision of manufacturing firms to source materials from abroad. To guide our empirical analysis we develop a monopolistic-competition model of the materials sourcing decisions of heterogeneous firms. The model generates predictions about how the intensity of international sourcing of materials depends on a firm's productivity and the availability of local services. These predictions are supported by the data. We find evidence that more productive manufacturing firms tend to have a higher ratio of imported materials to sales. In addition, we find evidence that services grease the wheels of international commerce: A greater availability of services across regions, industries and time increases a firm's foreign sourcing of materials relative to sales. Interestingly, this positive impact of local service availability on imports especially applies to stand-alone firms that, unlike multinationals, are less likely to rely on imported or internally provided services.},
address = {London},
author = {Peter Debaere and Holger G\"{o}rg and Horst Raff},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F12; L23; 330; firm heterogeneity; international trade; off-shoring; services; supply chain management},
language = {eng},
number = {7675},
publisher = {Centre for Economic Policy Research},
title = {Creasing the wheels of international commerce: How services facilitate firms' international sourcing},
type = {Discussion paper series // Centre for Economic Policy Research: International trade and regional economics},
url = {http://hdl.handle.net/10419/32962},
year = {2010}
}
